Thanks for leading me to Dr Vijay Malik’s site.
I knew most investors lose money in the stock market because they do not do any research. I did some ‘research’, but that has been confined to looking up a company’s PE, and ROCE/ROE. Sometimes I have read up about what the company does, and nothing much more. After reading the article on his site What I learnt from brief analysis of 2,800 Companies – Dr Vijay Malik
my eyes have opened to what a gargantuan task it is.
Also, it has exploded some myths for me. I have been under the impression that if you were looking for a multibagger, every investor’s dream, then you were more likely to find it among small cap companies. Reason was that the large juggernauts become slow moving and were not likely to grow very fast. Perhaps Peter Lynch is also of the same view. The article rebuts this.
Then I thought that a company with a unique business would take money home in bushels. It seems it is not so. Same is the case of a company that has assured business.
May be my task has become tougher, but may be I will be spared a lot of agony in future.
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